January 17, 2025
J.B. Hunt Transport Services ' JBHT fourth-quarter 2024 earnings per share of $1.53 fell short of the Zacks Consensus Estimate of $1.62. The earnings miss naturally disappointed investors, resulting in the stock declining in double digits in aftermarket trading on Jan. 16. The bottom line increased 4.1% on a year-over-year basis.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar .
Total operating revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year over year. The decline was mainly due to lower fuel surcharge revenues and yield pressure in its Intermodal segment. Total operating income for the reported quarter increased 2% year over year to $207 million.
J.B. Hunt Transport Services, Inc. price-consensus-eps-surprise-chart | J.B. Hunt Transport Services, Inc. Quote
Intermodal division generated quarterly revenues of $1.6 billion, down 2% year over year. Our estimate was $1.57 billion. Intermodal volume increased 5% year over year. Transcontinental network loads increased 4%, while eastern network loads increased 6% compared with the fourth quarter of 2023. Operating income decreased 10% year over year owing to lower yields.
Dedicated Contract Services segment revenues fell 5% from the year-ago period to $839 million, owing to a 4% decline in average trucks and a 1% reduction in productivity (revenue per truck per week). Our estimate was $850.5 million.
Productivity, excluding fuel surcharge revenues, increased 2% from a year ago, driven by increases in contracted indexed-based price escalators. Segmental operating income increased 5% year over year.
Integrated Capacity Solutions revenues decreased 15% year over year to $308 million, just ahead of our estimate of $305.5 million. Segmental volumes decreased 22% year over year. Revenue per load increased 9% year over year, owing to increases in both contractual and transactional rates, as well as changes in customer freight mix.
Segmental operating loss was $21.8 million compared with an operating loss of $24.9 million in the fourth quarter of 2023. ICS carrier base decreased 10% year over year, largely caused by changes to carrier qualification requirements.
Truckload revenues fell 7% year over year to $182 million, below our estimate of $195.3 million. Excluding fuel surcharge revenues, segmental revenues fell 3%, due to a flat load volume and a 2% decline in gross revenue per load excluding fuel surcharge revenues.
At the fourth-quarter end, total tractors were 1,919, compared with 1,958 a year ago. Trailers in the segment were 12,895 compared with the year-ago quarter’s figure of 13,561. Segmental operating income increased to $8.6 million from a modest operating loss in the fourth quarter of 2023.
Final Mile Services revenues fell 6% year over year to $228 million, lagging our estimate of $240.3 million, due to weakness in demand across many of the end markets served. Operating income increased 7% year over year, owing to the decline in segment revenues, along with higher purchased transportation and insurance-related costs.
J.B. Hunt exited 2024 with cash and cash equivalents of $47 million compared with $53.3 million at the end of 2023. Long-term debt was $977.7 million compared with $1.33 billion at the end of 2023.
In the fourth quarter of 2024, JBHT purchased roughly 489,000 shares for $86 million. As of Dec. 31, 2024, JBHT had approximately $882 million remaining under its share repurchase authorization.
Currently, J.B. Hunt carries a Zacks Rank #4 (Sell).
Investors interested in the Zacks Transportation sector may consider Alaska Air Group ALK and C.H. Robinson Worldwide CHRW.
Alaska Air Group currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here .
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 23.2%. ALK’s shares have surged 99% in the past year.
C.H. Robinson presently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for 2025 earnings has been revised 1.3% upward in the past 60 days.
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 10.3%. Shares of CHRW have risen 21% in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
